HomeMy WebLinkAboutCS 62-07
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REPORT TO
EXECUTIVE COMMITTEE
Report Number: CS 62-07
Date: December 10, 2007
From:
Gillis A. Paterson
Director, Corporate Services & Treasurer
Subject:
Revision to Select User Fees due to GST Reduction
Recommendation:
1. That Report CS 62-07 of the Director, Corporate Services & Treasurer be
received;
2. That Council approve the changes to the General Municipal Fees as outlined in
Attachment 1; and,
3. That the appropriate City of Pickering officials be authorized to take the
necessary actions to give effect thereto.
Executive Summary: In April of this year, Council approved By-law 6749/07 and
Council Report CS 16-07 which revised the City's fees and charges to reflect the 2007
Budget. The recently announced GST reduction from 6% to 5% has created the
situation where the final price charged for a small number of fees (including GST)
results in staff having to provide a few pennies in change. For example, public skating
with 6% GST is $3.00 and with the GST at 5% the price charged would be $2.97. The
attached fee schedule reflects a small adjustment to these fees to facilitate processing
of payments and eliminates the need to make small penny transactions.
Financial Implications: None
Sustainability Implications: This report does not contain any sustainability
implications.
Background: On October 30, 2007, the Government of Canada announced in its
Economic Statement that it proposes to reduce the GST rate by one percentage point
from 6% to 5% effective January 1, 2008. As in the previous situation, this reduction
will be passed onto the taxpayer. Therefore, individuals will be paying slightly less for
those services that attract GST such as memberships or program registrations.
Report CS 62-07
Subject: Revision to Select User Fees due to GST Reduction
Date: December 10, 2007
Page 2
109
Staff have reviewed the City's current user fee schedule and have discovered that there
are a few situations where an adjustment is required to the City's fees to eliminate the
need for making small penny (change) transactions. These are primarily "door"
admissions for public skating and pre-teen dances. As stated above, staff would prefer
to maintain the public skate fee at $3.00, and therefore eliminate the need to make
change in the amount of three pennies. The rationale for this change is to facilitate the
processing of door admissions and therefore maintaining customer service. If staff had
to make change for these admissions, the line-ups at these events would increase or
additional staff would have to be hired to process admissions to maintain customer
service at its current level.
Table One under "Column E," lists those fees that staff are recommending have an
adjustment. The proposed fee changes do not increase the final price charged of any
of the fees. Under "Column F" which reflects the final price with the 5% GST all the
fees remain the same except for ten pass adult, family ten pass and twenty pass
shinny where the end user will realize a small savings.
Arena Current Full Fee Full Fee Col. B Proposed Revised
Admissions Fee 6% GST 5% GST Minus Revised Full Fee
Col. C Fee 5% GST
1 0 Pass Youth $22.64 $24.00 $23.77 $0.23 $22.86 $24.00
10 Pass Adult $30.19 $32.00 $31.70 $0.30 $30.24 $31.75
Family 10 Pass $47.17 $50.00 $49.53 $0.47 $47.14 $49.50
Table One
Proposed Fee Changes
Senior Skate $0.94 $1.00 $0.99 $0.01 $0.95 $1.00
91
20 Pass Shinny $75.47 $80.00 $79.24 $0.76 $75.48 $79.25
Italicized words indicate lower full fees.
Report CS 62-07
Date: December 10, 2007
Subject: Revision to Select User Fees due to GST Reduction
1 j 0
Page 3
On June 18th, 2007, Council approved Resolution 142/07 that provided for special
promotion to reduce public swimming and public skating admissions on Saturdays.
Council approved that youth public swimming and skating be $2.00 and this rate and
the other special family rates of $5.00 will be maintained for the GST reduction.
Attachment 1 summarizes the fee proposed fee changes with an effective date of
January 1 , 2008.
Attachments:
1 . Proposed Fee Changes
Prepared By:
Approved I Endorsed By:
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Gillis A. Paterson
Director, Corporate Services & Treasurer
Stan Karwowski
Manager, Finance & Taxation
GAP:vw
Attachment
Copy: Chief Administrative Officer
Director, Operations & Emergency Services
Recommended for the consideration of
Pickering Cit unci!
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"iTACHMENT#-L-TOREPOR, . (!) ~ Dr)
Proposed Fee Changes
Effective - January 1, 2008
111
Current
Fee
(Excluding GST)
Proposed
Fee
(Excluding GST)
10 Pass Youth
$22.64
$22.86
10 Pass Adult
$30.19
$30.24
Family 10 Pass
$47.17
$47.14
Senior Skate
$0.94
$0.95
20 Pass Shinny
$75.47
$75.48